UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2008
                               --------------

                                       or

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from ________________to _________________

Commission File No.  0-8693
                    ----------------------


                              TRANSNET CORPORATION
                              --------------------
             (Exact name of registrant as specified in its charter)

        DELAWARE                                         22-1892295
--------------------------------            ------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
Incorporation or organization)

45 Columbia Road, Somerville, New Jersey                 08876-3576
----------------------------------------            --------------------
(Address of principal executive offices)                 (Zip Code)

Registrant's Telephone Number, Including Area Code:     908-253-0500
                                                        ------------

________________________________________________________________________________
Former name, former address and former fiscal year, if changed since last Report

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                                                Yes  X   No
                                                                   -----   -----

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer, or a smaller reporting company.
See definition of "large accelerated filer", "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

         Large accelerated filer____    Accelerated Filer ____
         Non-accelerated filed __X__    Smaller reporting company ____

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act)                                 Yes      No  X
                                                                   -----   -----

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of May 7, 2008: 4,823,304.


<PAGE>


                              TRANSNET CORPORATION
                              --------------------

                                    FORM 10-Q
                                    ---------

                                TABLE OF CONTENTS
                                -----------------
                                                                       PAGE NO.
                                                                       --------
PART I.  FINANCIAL INFORMATION
-------  ---------------------
         Consolidated Balance Sheets
                  March 31, 2008 (unaudited) and June 30, 2007            1

         Consolidated Statements of Operations (unaudited)
                  Three Months Ended March 31, 2008 and 2007              2
                  Nine Months Ended March 31, 2008 and 2007               3

         Consolidated Statements of Cash Flows (unaudited)
                  Nine Months Ended March 31, 2008 and 2007               4

         Notes to Consolidated Financial Statements                       5

     Item 2.  Management's Discussion and Analysis                        7

     Item 4.  Controls and Procedures                                    12

PART II.  OTHER INFORMATION
--------  -----------------

     Item 4.  Submission of Matters to a Vote of Shareholders            13

     Item 6.  Exhibits and Reports on Form 8-K                           13

     Signatures                                                          13
     Certifications                                                      14


                                       i.


<PAGE>


                       TRANSNET CORPORATION AND SUBSIDIARY
                       -----------------------------------
                           CONSOLIDATED BALANCE SHEETS
                           ---------------------------

                                             March 31,          June 30,
                                               2008               2007
                                          -----------------  ----------------
                                           (unaudited)
ASSETS:

CURRENT ASSETS

Cash and Cash Equivalents                   $  1,439,037      $  2,462,442
Accounts Receivable - Net                      5,533,667         5,606,680
Inventories                                      444,119           470,827
Other Current Assets                              61,386             9,032
                                          -----------------  ----------------

TOTAL CURRENT ASSETS                          $7,478,209        $8,548,981

PROPERTY AND EQUIPMENT - NET                     306,777           435,787

OTHER ASSETS                                     185,734           183,544
                                          -----------------  ----------------

TOTAL ASSETS                                $  7,970,720      $  9,168,312
                                          =================  ================

LIABILITIES AND STOCKHOLDERS' EQUITY:

CURRENT LIABILITIES:

Accounts Payable                            $    369,104      $    741,993
Accrued Expenses                                 259,750           231,651
Income Taxes Payable                               1,662             1,569
Floor Plan Payable                               867,967           802,020
                                          -----------------  ----------------

TOTAL CURRENT LIABILITIES                   $  1,498,483      $  1,777,233

COMMITMENT AND CONTINGENCIES                          --                --

STOCKHOLDERS' EQUITY:

Capital Stock - Common, $.01 Par Value,
Authorized 15,000,000 Shares;
Issued 7,408,524 at March 31, 2008 and
June 30, 2007 [of which 2,585,220 are
in Treasury at March 31,
2008 and June 30, 2007]                           74,085            74,085

Paid-in Capital                               10,574,670        10,574,670

Retained Earnings                              2,976,317         3,895,159
                                          -----------------  ----------------

Totals                                        13,625,072        14,543,914
Less: Treasury Stock - At Cost                (7,152,835)       (7,152,835)
                                          -----------------  ----------------


TOTAL STOCKHOLDERS' EQUITY                     6,472,237         7,391,079
                                          -----------------  ----------------


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $  7,970,720      $  9,168,312
                                          =================  ================

See Notes to Consolidated Financial Statements.


                                                                               1


<PAGE>


                       TRANSNET CORPORATION AND SUBSIDIARY
                       -----------------------------------
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                                   (UNAUDITED)
                                   -----------

                                               THREE MONTHS ENDED MARCH 31,
                                               ----------------------------
                                                 2008              2007
                                                 ----              ----

REVENUE
Equipment                                   $  2,660,444        $  4,007,882
Services                                       2,294,730           2,723,960
                                          -----------------   ---------------

Total Revenue:                                 4,955,174           6,731,842
                                          -----------------   ---------------

COST OF REVENUE
Equipment                                      2,496,337           3,461,704
Services                                       1,745,805           2,310,410

Total Cost of Revenue                          4,242,142           5,772,114
                                          -----------------   ---------------

Gross Profit                                     713,032             959,728

Selling, General and Administrative
  Expenses                                     1,647,460           1,541,809
                                          -----------------   ---------------

Operating (Loss) Income                         (934,428)           (582,081)
                                          -----------------   ---------------

Interest Income                                   11,864              17,227
Interest Expense                                    (926)                 --
                                          -----------------   ---------------

Income (Loss) Before Tax Expense                (923,490)           (564,854)

Income Tax (Benefit)                                  --                (538)
                                          -----------------   ---------------

Net (Loss) Income                           $   (923,490)       $   (564,316)
                                          =================   ===============

Basic Net Income (Loss) Per Common Share    $      (0.19)       $      (0.12)
                                          =================   ===============

Diluted Net Income (Loss) Per Common Share  $      (0.19)       $      (0.12)
                                          =================   ===============

Weighted Average Common Shares
  Outstanding - Basic                          4,823,304           4,823,304
                                          =================   ===============

Weighted Average Common Shares
  Outstanding - Diluted                        4,823,304           4,823,304
                                          =================   ===============


See Notes to Consolidated Financial Statements.


                                                                               2


<PAGE>


                       TRANSNET CORPORATION AND SUBSIDIARY
                       -----------------------------------
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                                   (UNAUDITED)
                                   -----------

                                              NINE MONTHS ENDED MARCH 31,
                                              ---------------------------
                                               2008                2007
                                               ----                ----

REVENUE
Equipment                                   $ 11,928,588        $ 13,681,265
Services                                       9,308,978           9,202,207
                                          -----------------   ----------------

Total Revenue:                                21,237,566          22,883,472
                                          -----------------   ----------------

COST OF REVENUE
Equipment                                     10,758,545          12,004,552
Services                                       6,409,110           7,154,899

Total Cost of Revenue                         17,167,655          19,159,451
                                          -----------------   ----------------

Gross Profit                                   4,069,911           3,724,021

Selling, General and Administrative
  Expenses                                     4,964,873           4,631,611
                                          -----------------   ----------------

Operating  (Loss) Income                        (894,962)           (907,590)
                                          -----------------   ----------------

Interest Income                                   39,646              63,470
Interest Expense                                 (60,203)
                                          -----------------   ----------------


Income (Loss)  Before Tax Expense               (915,519)           (844,120)


Provision for Income Tax (Benefit)                    --            (105,322)
                                          -----------------   ----------------

Net  (Loss) Income                          $   (915,519)       $   (738,798)
                                          =================   ================

Basic Net Income (Loss) Per Common Share    $      (0.19)       $      (0.15)
                                          =================   ================

Diluted Net Income (Loss) Per Common Share  $      (0.19)       $      (0.15)
                                          =================   ================

Weighted Average Common Shares
  Outstanding - Basic                          4,823,304           4,823,304
                                          =================   ================

Weighted Average Common Shares
  Outstanding - Diluted                        4,823,304           4,823,304
                                          =================   ================


See Notes to Consolidated Financial Statements.


                                                                               3


<PAGE>


                      TRANSNET CORPORATION AND SUBSIDIARIES
                      -------------------------------------
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                                   (UNAUDITED)
                                   -----------

                                              NINE MONTHS ENDED MARCH 31,
                                              ---------------------------
                                               2008                   2007
                                               ----                   ----

OPERATING ACTIVITIES:
Net Income (Loss)                           $   (915,519)       $   (738,798)
                                         -----------------    -----------------
Adjustments to Reconcile Net Income
to Net Cash:

Depreciation and Amortization                    173,531             154,968
Provision for Doubtful Accounts                       --             (55,000)
Deferred Income Taxes                                                (84,127)

Changes in Assets and Liabilities:
(Increase) Decrease in:
Accounts Receivable                               73,013          (3,411,674)
Inventory                                         26,711             887,028
Other Current Assets                             (52,354)           (106,048)
Other Assets                                      (2,937)             (2,818)

Increase (Decrease) in:

Accounts Payable and Accrued Expenses           (344,791)          1,272,723
Income Tax Payable                                (3,231)            (29,203)
                                         -----------------    -----------------

Total Adjustments                           $   (130,058)       $ (1,374,151)
                                         -----------------    -----------------

NET CASH - OPERATING ACTIVITIES - FORWARD   $ (1,045,577)       $ (2,112,949)
                                         -----------------    -----------------

INVESTING ACTIVITIES:
Capital Expenditures                        $    (43,775)       $    (80,259)
                                         -----------------    -----------------

NET CASH - INVESTING ACTIVITIES             $    (43,775)       $    (80,259)
                                         -----------------    -----------------

FINANCING ACTIVITIES -
Floor Plan Payable - Net                    $     65,947        $    365,148

NET (DECREASE) INCREASE IN CASH AND CASH
  EQUIVALENTS                               $ (1,023,405)       $ (1,828,060)

CASH AND CASH EQUIVALENTS AT BEGINNING
  OF PERIODS                                $  2,462,442        $  4,034,495
                                         -----------------    -----------------

CASH AND CASH EQUIVALENTS AT END OF
  PERIODS                                   $  1,439,037        $  2,206,435
                                         -----------------    -----------------

Supplemental Disclosures of Cash Flow
  Information:
Cash paid during the period for:
Interest                                    $     72,138        $         --
Income Taxes                                $      3,230        $         --

See Notes to Consolidated Financial Statements.


                                                                               4


<PAGE>


                       TRANSNET CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

(1.)   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       (a) Consolidation: The consolidated financial statements include the
       accounts of the Corporation and its wholly owned subsidiary, Century
       American Corporation. Intercompany transactions and accounts have been
       eliminated in consolidation.

       (b) Inventory: Inventory consists of finished goods. The Corporation's
       inventory is valued at the lower of cost (determined on the average cost
       basis) or market.

       (c) Cash and Cash Equivalents: For the purposes of the statement of cash
       flows, the Corporation considers highly liquid debt instruments,
       purchased with a maturity of three months or less, to be cash
       equivalents.

       (d) Revenue Recognition: Revenues related to our equipment sales are
       recognized when evidence of an arrangement exists, delivery of equipment
       has occurred, the sales price of the equipment being sold to our
       customers is both fixed and determinable and collectability of the
       accounts receivable related to the equipment sale is reasonably assured
       in accordance with SEC Staff Accounting Bulletin No. 104 Topic 13.

       Revenues related to our services are recognized as the service is
       performed using the percentage of completion method of accounting under
       which the total contract revenue during the term of an agreement is
       recognized on the basis of the percentage that each contract's
       proportional performance to date bears to the total completion of
       performance. Estimates of proportional performance are continuously
       monitored during the term of the contract, and recorded revenues and
       costs are subject to revision as the contract progresses.

       (e) Earnings Per Share: Earnings per common share - basic are based on
       4,823,304 weighted shares outstanding for the nine and three months ended
       March 31, 2008 and 2007, respectively. Diluted are based on 4,911,364 and
       4,928,304 weighted shares outstanding for the nine months ended March 31,
       2008 and 2007, respectively. The Company's options were not included in
       the computation of earnings per share for the periods ended March 31,
       2008 and 2007 because to do so would be antidilutive.

       (f) In the opinion of management, the accompanying unaudited consolidated
       financial statements contain all adjustments consisting only of normal
       recurring adjustments necessary to present fairly the financial position,
       the results of operations and cash flows for the periods presented.

       (g) These statements should be read in conjunction with the summary of
       significant accounting policies and notes contained in the Corporation's
       annual report on Form 10-K for the year ended June 30, 2007.

       (h) The results of operations for the three and nine months ended March
       31, 2008 are not necessarily indicative of the results to be expected for
       the entire year.

       (i) New Accounting Pronouncements:

           In June 2006, the FASB issued FIN No. 48, "Accounting for Uncertainty
           in Income Taxes - An Interpretation of FASB Statement No. 109
           Accounting For Income Taxes". This


                                                                               5


<PAGE>


           interpretation requires a recognition threshold and measurement
           attribute for the financial statement recognition and measurement of
           a tax position taken or expected to be taken in a tax return. This
           interpretation also provides guidance on derecognition,
           classification, interest, penalties, accounting in interim periods,
           disclosure and transition. This interpretation requires the
           evaluation of whether the technical merits of a tax position is more
           likely or not to be sustained upon examination, including the
           resolution of any related appeals or litigation. The Statement
           requires the measurement of the largest amount of benefit that is
           greater than a 50% likelihood of being realized upon final
           settlement, presuming the position will be examined by the
           appropriate taxing authority with the benefit of full knowledge and
           relevant information. The adoption of this interpretation is
           effective for fiscal years beginning after December 15, 2006.

           In September, 2006, the FASB issued SFAS No. 157, "Fair Value
           Measurements". This Statement defines fair value as `exit prices' NOT
           `entry prices' in generally accepted accounting principles (GAAP),
           and expands disclosures about fair value measurements for the purpose
           of promoting consistency and simplification of the existing
           codification of accounting principles. To eliminate differences in
           practice and reduce complexity in the application of GAAP, the
           Statement emphasizes that fair value is a market-based measurement,
           not an entity specific measurement and should be determined based on
           the assumptions that market participants would use in pricing the
           asset or liability. This statement establishes a fair value hierarchy
           that distinguishes between observable and unobservable inputs and
           clarifies the need for adjustments to fair value based on
           nonperformance, and other market risk assessment criteria, certain
           asset or event restrictions, and trading blockage. The adoption of
           this Statement was effective for financial statements beginning with
           fiscal years on or after November 15, 2007, including interim
           financial statements within that fiscal year. The adoption of SFAS
           No. 157 did not have a material impact on our fair value
           measurements.

           In September 2006, the Securities and Exchange Commission released
           Staff Accounting Bulletin No. 108, "Considering the Effects of Prior
           Year Misstatements when Quantifying Misstatements in Current Year
           Financial Statements" ("SAB 108"). SAB 108 provides guidance
           regarding the methodology for quantifying and evaluating the
           materiality of financial statement misstatements. SAB 108 is
           effective for fiscal years ending after November 15, 2006.
           Application of the guidance in SAB 108 is not expected to have a
           material effect on the Company's financial position, cash flows, or
           results of operations.

           In October, 2006, the FASB issued SFAS No.158, "Employers' Accounting
           for Defined Benefit Pension and other Postretirement Plans- An
           amendment of FASB Statements No. 87, 88, 106 and 132(R)". This
           statement requires an employer to recognize the overfunded or
           underfunded status of a defined benefit postretirement plan, other
           than a multiemployer plan, as an asset or liability in its statement
           of financial position and to recognize changes in that funded status
           in the year in which the changes occur through the comprehensive
           income of a business entity. This statement requires the measurement
           and recognition of the difference between plan assets at fair value
           and the benefit obligation, as of the date of the employer's fiscal
           year-end statement of financial position. This statement also
           requires additional disclosure in the footnotes to the financial
           statements about certain effects on net periodic benefit cost for the
           next fiscal year that arise from delayed recognition of the gains or
           losses, prior service costs or credits, and transition assets or
           obligations. Employers who have issued outstanding publicly traded
           equity securities are required to adopt this Statement by initially
           recognizing the funded status of a defined benefit postretirement
           plan including the required footnote disclosures as of the end of the
           fiscal year ending after December 15, 2006.


                                                                               6


<PAGE>



ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Revenues and earnings decreased in the quarter and nine-month period ended March
31, 2008 as compared to the same periods in the prior year, primarily due to an
overall slowdown in equipment sales, and to a lesser extent a slight decrease in
service revenues experienced in the March 2008 quarter. Revenues for the quarter
ended March 31, 2008 were $4,955,174, as compared to $6,731,842 for the quarter
ended March 31, 2007. For the quarter ended March 31, 2008, the Corporation
reported a net loss of $923,490 as compared with net loss of $564,266 for the
similar period in the prior fiscal year. Revenues for the nine months ended
March 31, 2008 were $21,237,566 as compared with $22,883,472 for the same period
ended March 31, 2007, with a net loss of $915,519 for the nine-month period
ended March 31, 2008, compared with net loss of $738,798 for the same period in
the prior fiscal year.

During the quarter and nine-month period in 2008, revenues from hardware sales
decreased due to reduced sales of equipment. Meanwhile, revenues from technical
services increased for the nine month period, despite a decrease in the third
fiscal quarter. The decreases were due to an overall lessened demand resulting
from the general economic slowdown throughout the country, and to continued
delays in state funded educational projects. Management anticipates that these
state delays will be resolved in the June 2008 quarter, and sales will be
realized during those months. The losses for both the quarter and the nine-month
period were a direct result of the revenue decrease, combined with increased
expenses.

Despite a slight decrease in service revenues during the March 2008 quarter,
overall for the first nine months of fiscal 2008, service revenues increased,
particularly higher profit-margin services, due to Management's focus on higher
profit technical services as well as the reduction in use of subcontractors to
provide these services. Gross profit margins on technical services increased
during both the quarter and nine month period in fiscal 2008, as compared to the
prior year. Management notes that the higher level of technical sophistication
of projects such as VoIP installations require the Corporation to maintain a
high skill level among its technical staff, with corresponding increases in
salaries and related personnel costs, which may impact profit margins.

During the fiscal periods discussed, the Corporation performed under contract
awards for VoIP products and services, the performance of which will extend over
several quarters, pending construction of the sites into which the systems will
be installed and implemented. Management notes that some of these projects were
affected by construction delays beyond the Corporation's control, and these
delays resulted in some order backlogs. None of these delays had any significant
impact upon the operations of the Corporation. During the periods discussed, the
Corporation's clients continued to be conservative in their IT budgetary
spending and to scrutinize their IT spending and the related returns on
investments before incurring new expenses. As a result, management refocused its
attention on utilization rates of its service technicians and selling and
administrative expenses in an effort to reduce expenses.

Management believes that clients' future spending will be subject to specific
criteria, but also believes that as single source provider, the Corporation will
be in a better position to satisfy client demands for cost-effectiveness and a
suitable return on investment. The VoIP networks marketed


                                                                               7


<PAGE>


by TransNet are designed with the capacity for "optimization" through the
subsequent addition of layers of solutions, for example, security solutions. We
are confident that our strategy of being an advanced solutions provider will
result in future revenues from clients' optimization of already installed
networks. In conjunction with these solutions, we note the rapid development of
technologies which now allow for the integration of voice, video, and data at
levels not seen before now, and which provide clients with greater operating
efficiencies.

As part of the industry competition pressures discussed herein, management
continues to see certain erosion in business related to Fortune 500 customers as
those customers enter into and/or expand business relationships with large
global partners and the transfer of this business to overseas service providers,
such as those in India, which continued in the March 2008 quarter. Management
believes that projects performed during the first three quarters of fiscal 2008
and 2007 replaced much of the reduced business, and believes its focus on higher
margin services related to VoIP/IP Telephony and security will lead to continued
growth and opportunities that will help compensate for this reduction. No
assurances can be given, however, that the Corporation will be able to replace
the loss of its business from these legacy services, or that operations will not
be adversely effected.

Service related revenues, a material segment of revenues, are significant in
their contributions to net income because these operations yield a higher profit
margin than equipment sales. Services during the periods discussed are comprised
primarily of services related to the sale and implementation of VoIP networks.
These services include planning, design, configuration, installation and
implementation, testing, and optimization. Revenues are also generated by a
variety of support contracts for these networks. Under these agreements,
TransNet's Support Center provides troubleshooting, diagnosis, and remedial
services performed remotely by skilled system engineers, who will be dispatched
to perform on-site repairs, if necessary. The agreements are for twelve months,
and provide a range of guaranteed response time, based upon the client's
specific response requirements or the nature of the outage. The availability of
these services is determined by the client, from 24/7 to next business day. In
addition, our system engineers and service technicians provide service and
support on an on-call basis. Additionally, for the fiscal periods discussed, as
noted above, revenue resulting from contracts with corporate clients for the
provision of service, support, outsourcing, and network integration has
decreased, in conjunction with the erosion of demand for these services. Those
service contracts, with a number of corporate and educational customers, provide
service and support for the customer's personal computers, peripherals, and
networks. These contracts are short-term, and contain provisions which permit
early termination. Although the contracts generally contain renewal terms, there
is no assurance that such renewals will occur.

As noted above, with respect to certain support services, services are performed
for a specific project, such as a VoIP installation, rather performed under a
services related contract, under which technical services are provided for a
specific period of time. Accordingly, the Corporation must rely more upon
projects as a source of revenues. Industry changes have also diminished the
demand for certain legacy support services such as help-desk services, while
increasing the demand for services such as those related to VoIP systems and
call centers. The Corporation has modified its service offerings in response to
these industry fluctuations, and has recruited experienced and specially
certified systems engineers and project managers to respond to increased VoIP
projects.

In addition to the challenging economic environment, the computer industry has
experienced a continuing trend of decreasing prices of computers and related
equipment. Management believes that this trend will continue. Industry-wide, the
result of price erosion has been lower profit margins on sales, which require
businesses to sell a greater volume of equipment to maintain past


                                                                               8


<PAGE>


earning levels. Another result of the price decreases has been intensified
competition within the industry, including the consolidation of businesses
through merger or acquisition, as well as the increased initiation of sales by
certain manufacturers directly to the end-user and the entrance of manufacturers
into technical services business. Management believes that the adoption of
policies by many larger corporate customers, which limit the number of vendors
permitted to provide goods and services for specified periods of time, has
further increased price competition.

To meet these competitive challenges and to maximize the Corporation's profit
margin, Management has focused on higher profit technical services, and to
increase prices where appropriate for more complex technical projects and
related services. In addition, management has modified its marketing strategy
during these years and has enforced expense controls. Management also utilizes
approaches such as manufacturers' direct shipment and billing of the customers
in exchange for payment to the Corporation of an "agency fee" as a means to
reduce equipment related costs while increasing profits. These direct ship sales
supplement sales through traditional channels, and are not material.
Management's current marketing strategy is designed to shift its focus to
provision of technical services and to sales of lower revenue/higher profit
margin products related to service and support operations. Management's efforts
include targeting commercial, educational, and governmental customers who
provide marketplaces for a wide range of products and services at one time, a
cost-effective approach to sales. These customers often do not have their own
technical staffs and outsource their computer service requirements to companies
such as TransNet. Management believes it maximizes profits through concentration
on sales of sophisticated unified communications solutions; promotion of the
Corporation's service and support operations; and strict adherence to cost
cutting controls. In light of the above, management emphasizes and continues the
aggressive pursuit of an increased volume of sales of VoIP systems, and related
technical service and support programs, and has introduced new technical support
programs offering a wide variety of alternatives of remote and on-site network
support and monitoring. Management believes that product sales will continue to
generate a significant percentage of the Company's revenues. In addition, the
Corporation's buying agreement with Ingram Micro, Inc. enhances the
Corporation's competitive edge through product discounts unavailable through
other sources.

The Corporation's performance is also impacted by other factors, many of which
are not within its control. These factors include: the short-term nature of
client's commitments; patterns of capital spending by clients; the timing and
size of new projects; pricing changes in response to competitive factors; the
availability and related costs of qualified technical personnel; timing and
customer acceptance of new product and service offerings; trends in IT
outsourcing; product constraints; and industry and general economic conditions.

With respect to selling, general and administrative expenses, the expenses
increased in part due to the Corporation's continued expansion of its sales
staff. As a result of increased expenses combined with the decrease in overall
revenues, these expenses increased as a percentage of revenues for both the
quarter and nine month period ended March 31, 2008. For the quarter ended March
31, 2008, these expenses were 33% of revenues as compared to 23% for the prior
year's quarter, and approximately 23% of revenue, as compared to 20%, for the
nine month periods ended March 31, 2008 and 2007 respectively. These increased
expenses include those management incurred to further expand its sales staff,
and invest in the expertise of its sales and support teams, their
certifications, and corporate infrastructure. Management incurred these expenses
as investments required to meet the demands of the current IT environment, and
to lead to sustainable growth for the Corporation. Management continues its
efforts to control and reduce administrative and personnel related costs, and
has reduced its overall personnel count during the 2008 fiscal year.


                                                                               9


<PAGE>


Interest income decreased in the third fiscal quarter of 2008 as compared to the
comparative quarter as a result of lower interest rates and lower amounts
invested. During the periods discussed in fiscal 2008, the Corporation incurred
interest expense associated with its floor planning payables. The expenses
resulted from changes in payment schedules and were impacted by the necessity to
order inventory to meet existing orders.

LIQUIDITY AND CAPITAL RESOURCES

There are no material commitments of the Corporation's capital resources, other
than floor planning commitments.

The Corporation currently finances a portion of its accounts receivable and
finances purchases of portions of its inventory through floor-planning
arrangements under which such inventory secures the amount outstanding. Floor
planning payables decreased in the fiscal 2008 periods compared to the same
periods in fiscal 2007 as the result of decreased purchases corresponding to
decreased sales. Inventory decreased in the nine month period ended March 31,
2008 as compared to the corresponding period in 2007 as a result of decreased
sales levels.

Accounts receivable decreased slightly for the interim period ended March 31,
2008 as compared to the same period in 2007 as a result of the slowdown in
sales, but continue to reflect the impact of increased level of business
conducted with governmental agencies which have extended and slower payment
cycles than non-governmental entities. Management has initiated efforts to
expedite payments from the governmental bodies. Cash levels decreased during the
nine months ended March 31, 2008 as compared to the same period in 2007, as
funds were used to finance hardware sales and were impacted by the level of
accounts receivable. Accounts payable decreased in the interim period of fiscal
2008 as compared to the same period in fiscal 2007 as a result of payment
scheduling.

For the fiscal quarter and nine months ended March 31, 2008, as in the similar
periods in the prior year, the internal resources of the Corporation were
sufficient to enable the Corporation to meet its obligations.

IMPACT OF INFLATION

The effects of inflation on our operations were not significant during the
periods presented.

CONTRACTUAL OBLIGATIONS

                                     Less than        1-3      4-5   More than
Contractual Obligations     Total     One Year      Years    Years     5 Years
-----------------------     -----     --------      -----    -----     -------

Real Estate Lease        $541,346     $185,605   $355,741       --          --

Office Equipment          $23,088       $7,104     14,208    1,776          --


                                                                              10


<PAGE>


CRITICAL ACCOUNTING POLICIES

The Corporation's financial statements are prepared in accordance with
accounting principles that are generally accepted in the United States. The
methods, estimates, and judgments used in applying these most critical
accounting policies have a significant impact on the results reported in the
financial statements. The Securities and Exchange Commission has defined
critical accounting policies as policies that involve critical accounting
estimates that require (a) management to make assumptions that are highly
uncertain at the time the estimate is made and (b) different estimates that
could have been reasonably used for the current period, or changes in the
estimates that are reasonably likely to occur from period to period, which would
have a material impact on the presentation of our financial condition, changes
in financial condition or in result of operations. Based on this definition, the
most critical policies include: revenue recognition and allowance for doubtful
accounts.

REVENUE RECOGNITION
Revenues related to our equipment sales are recognized when evidence of an
arrangement exists, delivery of equipment has occurred, the sales price of the
equipment being sold to our customers is both fixed and determinable, and
collectability of the accounts receivable related to the equipment sale is
reasonably assured in accordance with SEC Staff Accounting Bulletin No. 104
Topic 13.

Revenues related to our services are recognized as the service is performed
using the percentage of completion method of accounting under which the total
contract revenue during the term of an agreement is recognized on the basis of
the percentage that each contract's proportional performance to date bears to
the total completion of performance. Estimates of proportional performance are
continuously monitored during the term of the contract, and recorded revenues
and costs are subject to revision as the contract progresses.

ACCOUNTS RECEIVABLE
Accounts receivable are reported at their outstanding unpaid principal balances
reduced by an allowance for doubtful accounts, based on certain percentages of
aged receivables. We estimate doubtful accounts based on historical bad debts,
factors related to specific customers' ability to pay and current economic
trends.

THE MATTERS DISCUSSED IN MANAGEMENT'S DISCUSSION AND ANALYSIS AND THROUGHOUT
THIS REPORT THAT ARE FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT MANAGEMENT
EXPECTATIONS THAT INVOLVE RISK AND UNCERTAINTIES. POTENTIAL RISKS AND
UNCERTAINTIES INCLUDE, WITHOUT LIMITATION: THE IMPACT OF ECONOMIC CONDITIONS
GENERALLY AND IN THE INDUSTRY FOR MICROCOMPUTER PRODUCTS AND SERVICES;
DEPENDENCE ON KEY VENDORS; CONTINUED COMPETITIVE AND PRICING PRESSURES IN THE
INDUSTRY; PRODUCT SUPPLY SHORTAGES; OPEN-SOURCING OF PRODUCTS OF VENDORS; RAPID
PRODUCT IMPROVEMENT AND TECHNOLOGICAL CHANGE, SHORT PRODUCT LIFE CYCLES AND
RESULTING OBSOLESCENCE RISKS; TECHNOLOGICAL DEVELOPMENTS; CAPITAL AND FINANCING
AVAILABILITY; AND OTHER RISKS SET FORTH HEREIN.


                                                                              11


<PAGE>


ITEM 4.  CONTROL AND PROCEDURES

The Chief Executive Officer and Chief Financial Officer of the Corporation have
concluded, based on their evaluation as of March 31, 2008, that the
Corporation's disclosure controls and procedures are effective to ensure that
information required to be disclosed by the Corporation in the reports filed or
submitted by it under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), is recorded, processed, summarized and reported within the time
periods specified in the SEC's rules and forms, and include controls and
procedures designed to ensure that information required to be disclosed by the
Corporation in such reports is accumulated and communicated to the Corporation's
management, including the Chief Executive Officer and Chief Financial Officer,
as appropriate to allow timely decisions regarding required disclosure.

There were no significant changes in the Corporation's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of such evaluation.


                                                                              12


<PAGE>


                                     PART II
                                OTHER INFORMATION
                                -----------------

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS

On February 13, 2008, the Corporation held its annual meeting of shareholders
for the purpose of considering and acting upon the election directors. At the
meeting, the election of two nominated directors was approved.

Election of Directors:

                                               SHARES VOTED
                                               ------------
         NAME                            FOR             AUTHORITY WITHHELD
         ----                            ---             ------------------

Vincent Cusumano                      3,830,294                 208,581
John J. Wilk                          3,824,884                 213,991


ITEM 6:  EXHIBITS AND REPORTS ON FORM 8-K

         A. Exhibits -

             31.1 Certification required by Section 302
             31.2 Certification required by Section 302
             32  Certification required by Section 906

         B. Reports on Form 8-K -

              On February 14, 2008, TransNet Corporation filed a Form 8-K under
              Item 7.

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                              TRANSNET CORPORATION

                                  (Registrant)

                                   /s/ Steven J. Wilk
                                   --------------------------------------
                                   Steven J. Wilk, President and
                                   Chief Executive Officer

                                   /s/ John J. Wilk
                                   --------------------------------------
                                   John J. Wilk,
                                   Principal Financial and Accounting Officer
                                   and Chairman of the Board of Directors


DATE:  May 15, 2008


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